NLRB pleases unions by strangling economy

Editorial

President Barack Obama is trying to tiptoe around the National Labor Relations Board's effort to block Boeing Co. from opening a $750 million plant in South Carolina and bringing that state nearly 1,000 jobs.

The president has good reason to want to distance himself from an asinine decision that threatens to kill jobs, hamper productivity and drive corporations overseas.

But the president can't hide from the facts. His pro-union NLRB appointees are responsible for this outrage.

The board, acting on the complaints of the International Association of Machinists and Aerospace Workers, has charged Boeing with unfair labor practices.

Its offense? The company, which had suffered a series of strikes in Washington state, built a new, nonunion plant in South Carolina. The NLRB is trying to make the company do similar production work in Washington, which Boeing says would force it to close the plant altogether.

No Boeing jobs, it should be stressed, were lost in Washington, where Boeing still operates.

The NLRB's reasoning is irrational.

American businesses should be able to operate wherever economic conditions are favorable.

The NLRB stand would anchor a company to a state where it has unionized operations, giving businesses good reason not to locate in union states in the first place.

The board accuses Boeing of choosing South Carolina in retribution for costly Washington state strikes in the past. Labor laws prevent companies from retaliating against workers who strike. Executives had indeed complained about prior strikes.

But there was no retaliation. No union worker lost a paycheck. Company officials simply decided to build its new Dreamliner jet in a state they thought offered a better business environment.

It is outrageous to expect the executives not to consider the company's finances, which included losses due to strikes. Moreover, South Carolina offered a $900 million incentive package. Should Boeing be forced to ignore the enticement?

With the campaign heating up and the economy still in the doldrums, Obama has been trying to position himself as pro-business.

But his dancing around the NLRB's complaint against Boeing — one that will encourage corporations to move overseas rather than fight the NLRB — is telling.

Obama did acknowledge "as a general proposition, companies need to have the freedom to relocate," but then he emphasized the importance of following the "law."

He faulted both sides for the dispute: "What I think defies common sense would be a notion that we would be shutting down a plant or laying off workers because labor and management can't come to a sensible agreement."

What defies common sense is that his NLRB members would demand a corporation ignore it ledgers, its stockholders and its history in determining where to invest.

If the president cares about creating jobs and reviving the economy, he will worry far less about bolstering his union supporters and more about freeing both American businesses and American workers to be as competitive and productive as possible.